Oil surges amid warnings of supply shortages | Reuters
Oil prices climbed 6% on Thursday after the International Energy Agency (IEA) said three million barrels a day (bpd) of Russian oil and products could be shut in from next month and despite the U.S. Federal Reserve's decision to raise interest rates.
The supply loss would be far greater than an expected drop in demand of one million bpd triggered by higher fuel prices, the IEA said in a report on Wednesday. read more
Benchmark Brent crude futures gained $6.41, or 6.5%, to $104.43 a barrel by 1205 GMT. U.S. West Texas Intermediate (WTI) crude was up $5.95, or 6.3%, to $100.99 a barrel.
Both contracts fell the previous day, following an unexpected jump in U.S. crude stockpiles and signs of progress in Russia-Ukraine peace talks.
Morgan Stanley raised its Brent price forecast by $20 for the third quarter 2022 to $120 a barrel, predicting a fall in Russian production of about 1 million bpd from April.
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